Berenberg predicts 'another eventful year' for MedTech sector

Richter Gedeon Vegyeszeti Gyar Nyrt

30/01/2025 12:43

** Berenberg expects 2025 to be "another
eventful year" in the medical technology sector
due to the new U.S. administration and continued
market disruption in China
    ** It sees delays to the implementation of
wound care reimbursement changes and disruption
at the U.S. National Institutes of Health that
could affect research spending
    ** The broker expects 2025 to be busier for
M&A in the U.S. driven by more lax regulatory
environment and strong balance sheets 
    ** It is bearish on China recovery, seeing
broadening in the volume-based procurement
policy, disruption from the anti-corruption
crackdown and only limited stimulus effect on
demand
    ** Berenberg's large-cap top picks are Alcon
 ALCC.S  and Fresenius Medical Care  FMEG.DE 
    ** Alcon has a strong set-up in 2025, with
receding competitive headwinds in Implantables
and faster growth from new products and China
market share gains, it says
    ** For FMC, a combination of operational
turnaround and new U.S. launches could lead to an
earnings inflection in 2025, Berenberg adds
    ** Its small- and mid-cap top picks are Hikma
Pharmaceuticals  HIK.L  and Medacta  MOVE.S 
    ** It is encouraged by management changes at
Hikma and more confident in its growth outlook
across businesses
    ** Continued strong organic growth and new
product launches will meanwhile support Medacta's
medium-term growth, it says
    
 COMPANY                                 RATING
 Alcon                                   buy
 Fresenius Medical Care                  buy
 Hikma Pharmaceuticals                   buy
 Medacta                                 buy
 Advanced Medical Solutions  AMSU.L      buy
 Alliance Pharma  ALAPH.L                hold
 ANGLE  AGLE.L                           buy
 Carl Zeiss Meditec  AFXG.DE             hold
 Coloplast  COLOb.CO                     hold
 ConvaTec  CTEC.L                        buy
 Medios  ILM1k.DE                        buy
 Oxford Nanopore Technologies  ONT.L     buy
 Siemens Healthineers  SHLG.DE           buy
 Smith & Nephew  SN.L                    hold
 Uniphar  UPR.I                          buy
 Fagron  FAGRO.BR                        buy
 Fresenius  FREG.DE                      buy
 Gedeon Richter  GDRB.BU                 buy
 Gerresheimer  GXIG.DE                   buy
 Sandoz  SDZ.S                           hold
 SCHOTT Pharma  1SXP.DE                  hold
 Straumann  STMN.S                       buy
 Spire Healthcare  SPI.L                 buy
 
 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))